Today, Gov. Bobby Jindal and Sapa Delhi Plant Manager Ron Ballman dedicated an expansion by Sapa Extrusions that will grow the company's Northeast Louisiana operations, creating 37 new direct jobs at the facility averaging $31,200 a year, plus benefits. The expansion also will create another 65 indirect jobs in Northeast Louisiana and retain 237 direct jobs at Sapa.
Sapa makes a range of products, including aluminum sliding doors and football stadium seats, at the Louisiana facilities. The expansion, completed earlier this month on property provided by the city near Sapa's existing Delhi operations, allows the company to make platforms and stairs and enhances the existing operations. The expansion will enable Sapa to produce aluminum goods in Delhi for market opportunities in the petroleum and chemical industries.
Governor Jindal said, "Sapa's expansion shows our strong commitment to retaining and growing existing Louisiana companies. This win is a testament to our strong business climate, and most importantly, the hardworking men and women of Sapa and all of Northeast Louisiana.
"For nearly 30 years, Sapa has manufactured aluminum products in Delhi ranging from automatic sliding doors used by Walmart to structural aluminum used at football stadiums. This expansion will allow the company to compete for work in the lucrative petroleum and chemical industry sectors, and diversify its product line."
Louisiana Economic Development's Business Expansion and Retention Group, or BERG, began working with the company in April 2011 after Sapa decided to close a manufacturing plant in Magnolia, Ark. Sapa evaluated multiple states in deciding where to move that plant's high-performing Redd Team and its Edwards line of steps and platforms.
"Louisiana was a good fit for many reasons," said Ballman, the Sapa Delhi plant manager. "First, the extrusions were already being produced here, so product familiarity already existed. The availability of a skilled workforce was key to the decision, along with the reasonable costs associated with the location and along with the proximity of major shipping lanes, such as Interstate 20. But having funds available from Louisiana Economic Development was the real deal-closer."
To secure the expansion, LED offered Sapa a performance-based grant of $300,000 from a state Rapid Response Fund to help pay for equipment relocation and infrastructure preparation. In addition, the company is expected to utilize Louisiana's Quality Jobs and Industrial Tax Exemption incentives. Locally, Delhi municipal officials provided the 50,000-square-foot former Duracraft industrial building at a favorable long-term lease rate to incentivize the project.
Sapa Extrusions is the industry leader in aluminum extrusions throughout North America and part of Sapa Group, the world's largest aluminum profile company. Sapa Group is a wholly owned subsidiary of the Orkla Group and is based in Stockholm.